Hess Midstream LP (NYSE:HESM) Increases Dividend to $0.70 Per Share

Hess Midstream LP (NYSE:HESM) announced a quarterly dividend on Monday, January 27th,Wall Street Journal reports. Investors of record on Thursday, February 6th will be paid a dividend of 0.7012 per share on Friday, February 14th. This represents a $2.80 annualized dividend and a yield of 6.85%. The ex-dividend date of this dividend is Thursday, February 6th. This is a positive change from Hess Midstream’s previous quarterly dividend of $0.68.

Hess Midstream has raised its dividend by an average of 11.3% per year over the last three years. Hess Midstream has a dividend payout ratio of 77.8% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Analysts expect Hess Midstream to earn $2.67 per share next year, which means the company may not be able to cover its $2.74 annual dividend with an expected future payout ratio of 102.6%.

Hess Midstream Price Performance

HESM stock traded up $0.78 during trading on Tuesday, hitting $40.97. 801,420 shares of the company’s stock traded hands, compared to its average volume of 848,848. The business has a fifty day simple moving average of $37.71 and a 200 day simple moving average of $36.71. Hess Midstream has a 52 week low of $32.15 and a 52 week high of $41.61. The company has a debt-to-equity ratio of 7.85, a quick ratio of 0.70 and a current ratio of 0.70. The stock has a market capitalization of $8.93 billion, a price-to-earnings ratio of 17.36 and a beta of 1.52.

Hess Midstream (NYSE:HESM) last issued its quarterly earnings data on Wednesday, October 30th. The company reported $0.63 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.58 by $0.05. Hess Midstream had a return on equity of 47.87% and a net margin of 13.06%. The business had revenue of $378.50 million for the quarter, compared to the consensus estimate of $376.98 million. During the same period in the prior year, the business posted $0.57 earnings per share. The company’s quarterly revenue was up 4.2% compared to the same quarter last year. As a group, research analysts expect that Hess Midstream will post 2.41 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Separately, Raymond James increased their target price on shares of Hess Midstream from $42.00 to $45.00 and gave the company an “outperform” rating in a research note on Tuesday.

Insider Transactions at Hess Midstream

In related news, CFO Jonathan C. Stein sold 7,923 shares of the firm’s stock in a transaction dated Monday, November 11th. The shares were sold at an average price of $35.32, for a total value of $279,840.36. Following the transaction, the chief financial officer now owns 59,945 shares of the company’s stock, valued at $2,117,257.40. This trade represents a 11.67 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website.

Hess Midstream Company Profile

Hess Midstream LP owns, develops, operates, and acquires midstream assets and provide fee-based services to Hess and third-party customers in the United States. It operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression systems; crude oil gathering systems; and produced water gathering and disposal facilities.